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2022 (9) TMI 407 - Income Tax
Penalty levied u/s. 271(1)(c) or u/s. 271F - assessee company failed to file Return of Income - assessee has not participated in the hearings anytime - None appeared on behalf of the assessee in today’s hearing as well as in previous hearing date - CIT(A) in his order held that the assessing officer ought to have invoked penalty provisions u/s. 271F for non filing of return of income and case does not cover under 271(1)(c) either concealment of income or furnishing inaccurate particulars of the income - HELD THAT:- The above observation of the Ld. CIT(A) is found to be not correct for the reason that in Para 5 of the penalty order, the A.O. has clearly mentioned that penalty proceedings for concealment of income initiated by way of issue of notice 274 r.w.s. 271(1)(c) - Similarly, in the penalty order, the assessing officer held that the assessee has willfully and deliberately concealed income by not filing the Return of Income. Therefore the assessee is liable for penalty u/s. 271(1)(c) read with Explanation 1 of the Act.
As in the assessment order, the assessing officer also initiated penalty proceedings under 271F of the Act as well as u/s. 271B of the Act for not getting the books audited. The conclusion arrived by the Ld. CIT(A) is legally not correct and the same is hereby set aside and the penalty order passed u/s. 271(1)(c) by the Assessing Officer is hereby restored.
This view of ours is further supported by producing the penalty order passed u/s. 271F by the Assessing Officer wherein he has levied a penalty of Rs. 5,000/- for not filing the Return of Income as per the Section 139(1) of the Act. The Assessing officer also hereby dropped penalty initiated u/s. 271B of the Act by order dated 24.08.2015. Appeal field by the Revenue is allowed.